Whistleblower at center of troubled Medicaid contract sued
BATON ROUGE - A Maryland firm that lost a $200 million state contract to process Medicaid claims has sued a whistleblower, accusing him of making false statements that resulted in the cancellation of the contract.
Client Network Services Inc. is seeking more than $30 million in damages from Stephen Smith, the company's former senior vice president.
Smith cooperated with a state grand jury probe that led to the 2014 indictment of Louisiana's health secretary, Bruce Greenstein, on charges related to the contract's award.
The lawsuit was filed in U.S. District Court in Maryland. CNSI is based in Rockville, Maryland.
Smith, upon the advice of his lawyers, declined to comment.
Meanwhile, Louisiana Assistant Attorney General David Caldwell said the state investigation continues into potential wrongdoing by CNSI.
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